I sincerely hope you're kidding. What's wrong with racism in games and in an universe that IS racist as it is? Or do you think that when someone says "Beg for mercy, snowman!", he's really fighing some fat oversized doll made of frozen water?
Um... I think your dissent is directed at the wrong person. Is this the post you meant to quote? The person you are replying to was saying that the thread title is not racist, it's simply a term for Dunmer used to describe their ash-coloured skin.
It's no more racist than saying "our black friend" when referring to a black person.